STEWART INVESTORS ASIA PACIFIC LEADERS B - Overview

The objective of the fund is to grow capital by investing in companies in the Asia Pacific region (excluding Japan). These include large and mid-sized companies with a total stock market value of at least US$1 billion, based in or having significant operations in the Asia Pacific region including Australia and New Zealand.

Fund summary

Charges

Standard initial charge

4.00%

Initial charge via Bestinvest

0.00%

Additional bid/offer spread

0.00%

Annual management charge

0.85%

Ongoing charges figure

0.90%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

This fund is run by David Gait, with an absolute return objective in mind. He tends to be bearish and believes attempts to time market investment to be folly. Consequently, Gait likes to play it safe with his investors' money, investing in large companies with sustainable cashflows and robust balance sheets. Prioritising capital preservation higher than most of his peers, the manager tends to outperform in falling markets, but lag when they rise strongly. Engagement with management of the companies where the fund invests is key: the team makes sure that senior managers’ interests are aligned with the shareholders’ ones. The conservative investment style has resulted in the fund’s long-term outperformance.

Investment process

The manager employs a fundamental bottom up investment approach targeting companies that have strong balance sheets, are cash generative, shareholder friendly and are able to grow their revenues and profits sustainably and predictably. Investment horizon is generally medium to long term and Gait avoids 'momentum' type stocks. Stock research is conducted by a large and well-resourced team based in Edinburgh, Hong Kong and Singapore. They are focused on their own proprietary research tools and prefer to meet management of businesses before and when they invest. In addition, the team benefits from the house's parent company's resources, Commonwealth Bank of Australia, based in Australia.

Sector breakdown

Portfolio details

Typically 30-60 stocks, depending on the level of conviction.
- The fund’s structural underweight in
China might help performance if the Chinese market remains subdued

Constraints

Portfolio is relatively unconstrained with CIO limits of a maximum of 30% in any sector. Some limits also apply to country weights. Max 10% in companies under US$1bn market value.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.

Average monthly relative returns

Bestinvest MRI

12/13

13/14

14/15

15/16

16/17

3 years

5 years

Career

3 years

5 years

Career

0.13%

0.77%

1.11%

-0.22%

-1.01%

-0.04%

0.16%

0.29%

54.00%

81.60%

98.40%

Performance figures are based on the average of monthly
percentage returns relative to the benchmark index.

David Gait

Gait is a senior portfolio manager with First State’s Global Emerging Markets/Asia Pacific (ex-Japan) team having joined the company in 1997. In early 1999, he joined the Asia Pacific (ex-Japan) desk as an analyst, covering Korea, Taiwan and the Indian subcontinent. After a period of subsequent research focusing on China, South-East Asia and non-Asian emerging markets, he now covers all Asian-ex Japan and Emerging Markets, with a specific emphasis on sustainable investment within these asset classes. Gait holds an MA with honours in Economics from Cambridge University, and an MSc in Investment Analysis from Stirling University. He is an Associate member of the UK Society of Investment Professionals.

Track record

David Gait has 11.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.29%.
During the worst period of relative performance (from May 2016 - August 2017) there was a decline of 16% relative to the index. The worst absolute loss has been 30%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 98%.

Periods of worst performance

Absolute

-30%
(December 2007 - October 2008)

Relative

-16%
(May 2016 - August 2017)

Other funds managed

Start Date

PACIFIC ASSETS IT

Jul 2010

STEWART INVESTORS ASIA PACIFIC LEADERS A

Jul 2016

STEWART INVESTORS ASIA PACIFIC SUSTAINABILITY A

Dec 2005

Sector record since
January 2006 (12 yrs)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI)
measures the likelihood that the fund manager is adding value through their decisions.
It is based on their performance record over the course of their career, adjusted
for the amount of risk taken. MRI is an important contributor to our fund rating
system but it is also vital to take account of qualitative factors. It is also very
important to select funds to form a cohesive portfolio with an appropriate overall
risk level.

The value of your investment can go down as well as up, and you can get back less than you originally invested.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.